Comment Re:And computers used to cost millions of dollars (Score 1) 471
It stinks that GM is losing money on these, but they're putting the effort into it, and I have to applaud them for it. Then again, didn't the PS3 and Xbox 360 cost more to make at launch time than they were selling for? Maybe GM is on to something...
(emphasis mine) Oh, they're on to something, alright. GM is "too big to fail". This makes it easy for them to start risky, costly ventures, because they'll either succeed and make GM rich, or the gov't will bail GM out with more loans until GM is profitable again.
I have to chime in the reason PS3 and Xbox 360 were sold at a loss was to bring in customers as they made money from the games being sold.
GM made this car not for sales but to bring people into the dealerships and hopefully purchase a Cruze which they do make a profit on. This is no different then the Halo cars that some car companies have to get people excited about the brand. It is the same as what Toyota did with the Prius and what Honda failed to do with the Insight.
I'm hoping this works out so people will buy Chevy products that are profitable but only time will tell.
Also for those mad that GM was bailed out you think the economy is bad now imagine how bad it would be with a few million extra people unemployeed and never mind the issues this would have caused with all the other automotive companies with how they all use the same suppliers. Toyota, Ford, BMW,...etc would have all had massive problems as suppliers went under and the development money GM supplied dried up. GM was too big to fail and I do feel they need to shink down. My other thought was that Chrysler should have died and been sold off which would have helped all the other car companies out but I guess you can't pick favorites in the auto world unlike finance.